CHAPTER 1
Intrapreneurs = Employees within established, larger firms creating all sorts of new ventures whilst
remaining in salaried employment, content for the profits (and risks) of their work to go to their
employers.
Social or civic entrepreneurs = Entrepreneurs that have social objectives and are willing to invest
their own time and risk their own capital for little or no financial return, with profits being ploughed
back to meet these objectives. What defines the entrepreneur is their willingness to act upon the idea.
Salary-substitute firms = ones that simply generate an income comparable to what they might earn as
an employees (e.g., plumbers).
Lifestyle firms = ones that allow them to pursue a particular lifestyle whilst enabling them to earn an
acceptable living (e.g., sports instructors).
Barriers to start-up:
Need for regular income
Fear of loss of capital
No capital
Risk aversion
Doubts about ability
Triggers to start-up:
Push factors (situational): Pull factors (psychological):
Unemployment Independence
Disagreements Recognition
‘Misfit’ Personal development
No other option Wealth
Factors that might improve chances of success with new venture creation
Personal character traits: being able to live with stress and enjoy the challenges
Good business idea
The necessary skills to deliver your product/service idea
A plan to launch and grow your business: the act of planning helps you prepare for
uncertainties that come with entrepreneurship
The resources you need to launch and grow your business
New Venture Creation Framework:
1. Part 1: You and Your Business Idea
2. Part 2: Market segments and the value proposition
3. Part 3: Marketing strategy (how you will deliver your value proposition to each of the
customer segments you have identified. The tool for delivering this is called the marketing
mix & good marketing strategy helps you develop competitive advantage against competitors)
4. Part 4: Operations plan: this ranges from legal to operating issues, including partnership
opportunities.
5. Part 5: Risk and strategic options: it should identify the critical success factors that
underpin the operations of the business and recognize different ways of doing things should
circumstances change or different from those anticipated – called strategic options.
6. Part 6: Resources available and needed: resources you need to bring to business, e.g.,
human, social, intellectual, and financial.
7. Part 7: Financial plan: shows the profit the business should generate and how it will be used.
It shows the cash flow of the business and the external finance that will be required.
1
Intrapreneurs = Employees within established, larger firms creating all sorts of new ventures whilst
remaining in salaried employment, content for the profits (and risks) of their work to go to their
employers.
Social or civic entrepreneurs = Entrepreneurs that have social objectives and are willing to invest
their own time and risk their own capital for little or no financial return, with profits being ploughed
back to meet these objectives. What defines the entrepreneur is their willingness to act upon the idea.
Salary-substitute firms = ones that simply generate an income comparable to what they might earn as
an employees (e.g., plumbers).
Lifestyle firms = ones that allow them to pursue a particular lifestyle whilst enabling them to earn an
acceptable living (e.g., sports instructors).
Barriers to start-up:
Need for regular income
Fear of loss of capital
No capital
Risk aversion
Doubts about ability
Triggers to start-up:
Push factors (situational): Pull factors (psychological):
Unemployment Independence
Disagreements Recognition
‘Misfit’ Personal development
No other option Wealth
Factors that might improve chances of success with new venture creation
Personal character traits: being able to live with stress and enjoy the challenges
Good business idea
The necessary skills to deliver your product/service idea
A plan to launch and grow your business: the act of planning helps you prepare for
uncertainties that come with entrepreneurship
The resources you need to launch and grow your business
New Venture Creation Framework:
1. Part 1: You and Your Business Idea
2. Part 2: Market segments and the value proposition
3. Part 3: Marketing strategy (how you will deliver your value proposition to each of the
customer segments you have identified. The tool for delivering this is called the marketing
mix & good marketing strategy helps you develop competitive advantage against competitors)
4. Part 4: Operations plan: this ranges from legal to operating issues, including partnership
opportunities.
5. Part 5: Risk and strategic options: it should identify the critical success factors that
underpin the operations of the business and recognize different ways of doing things should
circumstances change or different from those anticipated – called strategic options.
6. Part 6: Resources available and needed: resources you need to bring to business, e.g.,
human, social, intellectual, and financial.
7. Part 7: Financial plan: shows the profit the business should generate and how it will be used.
It shows the cash flow of the business and the external finance that will be required.
1
